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What is New & Used Auto Dealer Insurance?

Operating an auto dealership requires substantial investments of time and finances, and those investments ought to be protected when possible. New and used auto dealer insurance can help protect Massachusetts dealerships from many of the risks that they face.

New and used auto dealer insurance is specialized commercial insurance for auto dealerships. Because dealerships are exposed to many risks, these policies typically come as package policies that have multiple coverages bundled together. Dealerships often can select the particular coverages that they want in a policy.

What Businesses in Massachusetts Should Carry Auto Dealer Insurance?

Most auto dealerships in Massachusetts should have auto dealer insurance in place, and not carrying coverage can potentially jeopardize a dealership’s license. This generally applies to new car dealerships, used car dealerships, independent dealerships, RV dealerships and similar businesses.

This insurance normally isn’t suitable for dealerships that sell snowmobiles, ATVs or other equipment that’s not taken on public roads. These dealerships may have some similar coverage needs, but other coverage needs tend to make another commercial insurance policy better for these situations.

An insurance agent who specializes in auto dealer insurance can help businesses determine whether an auto dealer or other insurance policy is better in a given situation.

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What Protections Are Available Through Auto Dealer Insurance Policies?

Most auto dealer insurance policies make a variety of coverages available, and these typically include both property and liability protections. Property protections normally insure assets that a dealership owns, while liability coverages generally cover situations when a dealership might be financially responsible.

The following are some property coverages that policies might offer and dealerships might want:

  • Commercial Building Coverage, which may cover owned facilities against damage and destruction
  • Commercial Contents Coverage, which may cover equipment, fixtures and tools against damage
  • Auto Dealer Physical Damage Coverage, which may cover inventory vehicles against damage
  • Equipment Breakdown Coverage, which may cover malfunctioning of essential equipment
  • Business Income Coverage, which may cover prolonged revenue decreases after disasters

Some liability coverages that might be available and desirable are:

There are still more coverage options that policies might offer.

Are Bonds Included Within Auto Dealer Insurance Policies?

Massachusetts state law generally requires auto dealerships to care minimum bonds, and these bonds can usually be purchased from insurance companies. The bonds themselves are seldom included within an actual auto dealer insurance policy, however. They’re instead usually sold as a standalone product.

How Much Are Premiums for Auto Dealer Insurance Policies?

The premiums charged for auto dealer insurance policies are based on many factors, and premiums vary as a result. A dealership’s location, inventory, services and claims history are merely some of the factors that can impact rates.

To find out how much insurance will cost in a specific situation, dealerships can compare quotes with an independent insurance agent. Independent agents are able to show quotes from several different insurance companies.

How Can Dealerships Get New & Used Auto Dealer Insurance?

For help insuring an auto dealership that’s located in Massachusetts, contact the independent insurance agents at Roger Butler Insurance. Our agents will work closely with you to determine what coverages should be included in a policy, and then they’ll help you find the best new and used auto dealer insurance policy that provides those protections.

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